With the pound at its highest level against the dollar for a generation, now is the perfect time to bet on foreign exchange. Our correspondent shows you how to do it

CONSUMERS were last week offered $2 to the pound on the high street for the first time in 26 years as the American currency plumbed new lows against sterling.

Though the pound first broke the $2 mark in April, it is only now, with the exchange rate in the wholesale market at $2.08, that consumers are seeing the benefit in high-street bureaux de change.

Banks and exchange firms typically offer rates that are 4% worse than the money markets, in addition to their conversion fees. With £4 billion exchanged into dollars alone each year, this means they are raking in an extra £160m at the expense of customers.

Travelex saw a 40% surge in the amount of US dollars bought last week after offering a rate of $2.01 to the pound online. M&S Money, meanwhile, is offering $2 in its 107 bureaux de change until the end of today.